A fresh cut to interest rates is looking more likely after the economy fell more than expected in November.
The figures from the Office for National Statistics revealed the weakest annual growth rate in eight years – 0.9% – and a 0.3% contraction in November itself, causing the pound to fall to just $1.30 yesterday.
Markets are now pricing in a 50% chance that the bank of England’s next move will be a rate cut. A week ago it was a mere 5% chance.
